IT Index sheds 57.20 pts as TCS results take toll

Mumbai, April 19 | Updated: Apr 20 2005, 05:36am hrs

The dismal results posted by Tata Consultancy Ltd (TCS) took its toll on almost all the technology stocks on Tuesday. The BSE IT index was the worst performer of the day, shedding 57.20 points or nearly 2.38% to close at 2,346.47. The index has now shed close to 10% in just one week.

In fact, the outcome of TCS results can be gauged from the fact that the markets which were at one point of time trading up more than 100 points ended the day shedding 21.92 points.

The BSE Teck index, which comprises some technology stocks was the second biggest loser among the sectoral indices, shedding 1.55% or 24.42 points to close at 1,549.57.

The fall in technology stocks was led by TCS itself, which closed at Rs 1,209.75, shedding 7.65% or Rs 100.25. The stock was down 10% during afternoon trades. The technology major reported a fall of 33.3% in its net in the fourth quarter of the last fiscal.

However, analysts are still quite bullish on the tech sector and attribute Tuesdays fall to the results of TCS. The outlook on the technology sector is still positive. The present concerns are due to the muted guidance of Infosys and now the dismal results of TCS. However, Infosys has historically always crossed its guidance numbers. As far as TCS is concerned, the offshore revenues will increase in a larger quantum, when compared to other companies, said an IT analyst with a Mumbai-based brokerage firm.

Other technology heavyweights which ended the day in the red include Satyam Computer (down 5.61% at Rs 367.85), Wipro Ltd (down 3.30% at Rs 576.35), Patni Computers (down 3.91% at Rs 325.70) and HCL Technologies (down 4.83% at Rs 342.60). Moser Baer and MphasiS BFL also ended with marginal declines.

Incidentally, the results season has not been good for the technology sector stocks, as almost all the heavyweights have lost in the range of 6-13% in the last one week.

Among the BSE IT index constituents, only 3 stocks ended the day in the positive territory. Infosys Technologies (up 1.54% at Rs 1,914.10), Polaris Labs (up 0.78% at Rs 109.25) and Flextronics (up 0.79% at Rs 510.25) all ended in the black.